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Please fill in with the same format that the question gives. Thanks GCBelco Manufacturing produces and sells oil filters for $3.30 each. A retailer has
Please fill in with the same format that the question gives. Thanks
GCBelco Manufacturing produces and sells oil filters for $3.30 each. A retailer has offered to purchase 25,000 oil filters for $1.24 per filter. Of the total manufacturing cost per filter of $2.15, $1.10 is the variable manufacturing cost per filter. For this special order, GCBelco would have to buy a special stamping machine that costs $8.500 to mark the customer's logo on the special-order oil filters. The machine would be scrapped when the special order is complete. This special order would use manufacturing capacity that would otherwise be idle. No variable nonmanufacturing costs would be incurred by the special order. Regular sales would not be affected by the special order. Would you recommend that GCBelco accept the special order under these conditions? Complete the following incremental analysis to help you make your recommendation. (Use parentheses or a minus sign to indicate a decrease in operating income from the special order.) Per Unit Total Order (25,000 units) 31000 Incremental Analysis of Special Sales Order Decision Revenue from special order Less variable expense associated with the order: Variable manufacturing costs 27500 8500 Contribution margin Increase (decrease) in operating income from the special order Choose from any list or enter any number in the input fields and then click Check Answer. - part Clear All Check Answer 1 remaining sStep by Step Solution
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